"What is at a peak is certain to decline. He who shows his hand will surely be defeated. He who can prevail in battle by taking advantage of his enemy's doubts is invincible." - Cao Cao
The CDS market is a clear illustration of the surge of Chinese and Korean corporates versus the slow decline of Japanese corporates - source Bloomberg:
The Itraxx Ex-Japan CDS index above (Blue line) is primarily weighted in Chinese and Korean corporates whereas the Itraxx Japan CDS (Red line) is very much weighted by the following sectors: Technology, Utilities, Shipping and Steel which are currently under tremendous pressure.
"Nature's laws must be obeyed, and the period of decline begins, and goes on with accelerated rapidity." - Warren De la Rue, British Scientist.
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